Moody's Investors Service has downgraded Rhode Island Economic Development Corporation's Job Creation Guarantee Program (38 Studios LLC) to Baa1 from A2. At the same time, Moody's placed the Job Creation Guarantee rating under review for possible further downgrade. Moody's has also placed the state of Rhode Island's Aa2/negative general obligation and Aa3/negative related appropriation bond ratings under review for downgrade.

Chafee has expressed no such doubt, arguing that not paying back the bonds would be harmful for the state's reputation and credit.

In a statement, he says:

“I am confident that we will continue to honor our obligations. We want to send a clear message to the investment community that Rhode Island is a place that will make the difficult but necessary decisions for the long-term health of our state.

I believe that the General Assembly will do the right thing to protect the reputation and borrowing ability of Rhode Island.”